| Notice Filed with SOS |
08/30/2024 |
| Rule |
ProposedRuleAttach2024-00429.docx
|
| Additional Information |
AddInfoAttach2024-00429.pdf
|
| Statutory Authority |
11-101-102. Declaration of policy.
11-102-104. Powers and duties of the banking board.
11-109-103. Applicability of powers of banking board and bank commissioner to trust companies |
| Description of Subjects/Issues |
The purpose of this rule is to establish that transactions between related parties and interests of a trust company and its fiduciary accounts represent self-dealing and are prohibited except under very limited circumstances. Banking Board Rule 3 CCR 701-6 TC21 outlines those circumstances.
The Colorado Division of Banking (Division) finds that the proposed amendments this rule are necessary as follows:
Broaden the scope of law applicable to a trust company’s investment of funds of fiduciary accounts when the trust company has investment discretion authority over the fiduciary accounts.
Clarify who should be included as prohibited parties.
Broaden the scope of law applicable to a trust company’s selling of assets between fiduciary accounts.
Remove the statement the trust company “may borrow money on behalf of the fiduciary account from itself” since trust companies are not allowed to originate loans. |
| Purpose/Objective of Rule |
The purpose of this rule is to establish that transactions between related parties and interests of a trust company and its fiduciary accounts represent self-dealing and are prohibited except under very limited circumstances. Banking Board Rule 3 CCR 701-6 TC21 outlines those circumstances. |
| Basis And Purpose |
BasisAndPurposeAttachment2024-00429.pdf
|
| Comments |
The Colorado Division of Banking (Division) finds that the proposed amendments this rule are necessary as follows:
􀆔 Broaden the scope of law applicable to a trust company’s investment of funds of fiduciary accounts when the trust company has investment discretion authority over the fiduciary accounts.
􀆔 Clarify who should be included as prohibited parties.
􀆔 Broaden the scope of law applicable to a trust company’s selling of assets between fiduciary accounts.
􀆔 Remove the statement the trust company “may borrow money on behalf of the fiduciary account from itself” since trust companies are not allowed to originate loans. |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
10/17/2024 |
| Hearing Time |
10:00 AM |
| Hearing Location |
1560 Broadway, Suite 100D, Denver, Colorado |
| Contact Name |
Charles Siler |
| Contact Title |
Banking Board Administrator |
| Contact Telephone |
3038947584 |
| Contact email |
charles.siler@state.co.us |